Factors Affecting Banks’ Deposit Growth – A Case Commercial Bank of Ethiopia (CBE)

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Addis Ababa University


This study aimed to identify factors affecting bank deposit growth by taking Commercial Bank of Ethiopia as evidence. Thus, the researcher adopts mixed research approach. Questionnaire is used to gather information from the employees of the bank particularly for those employees who actively participated in deposit mobilization tasks. Regarding to the secondary data; time series data covering 1982 - 2016 was analysed. First, the time series data were assessed using descriptive statistics for the variables. Second, estimated model was a single regression equation with deposit as the dependent variable and explanatory variables as economic growth (gross domestic product), inflation, deposit interest rate, exchange rate, number of branch, population growth, effects of financial innovation and dummy variable. The results from economic analysis showed that all the explanatory variables were positively correlated with the explained variable. Among these variables, branch opening is an important strategy for deposit growth and highly significant than others. GDP or economic growth of the country is also next to branch opening is significantly affects CBE’s deposit. And finally, the study had recommended what should be done to encouraging deposits growth by Commercial bank of Ethiopia for the benefit of the domestic deposit mobilization, like the need for strong public awareness and sustainability of the prize linked scheme.


A Thesis Submitted to the Department of Accounting and Finance Presented in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance


Bank Deposits, Commercial Banks, Determinants of bank deposits